Oil prices rose by more than $3 a barrel on Friday, reaching their highest levels in nearly six months as Houthi attacks in Saudi Arabia heightened concerns over potential disruptions to energy supplies from the Middle East. An oil spill was also reported off the coast of the United Arab Emirates (UAE).
Brent crude futures settled at $116.72 a barrel, up $3.55, or 3.14%, marking their highest level since April 29. US West Texas Intermediate (WTI) crude closed at $103.27 a barrel, gaining $3.80, or 3.8%.
For the week, Brent rose 6%, while WTI gained 2.3%.
Adam Turnquist, chief cross-asset strategist at LPL Financial, said fears of supply disruptions had driven prices higher following a series of Houthi attacks across Saudi Arabia, including strikes targeting energy infrastructure.
Reuters reported that Saudi Aramco ordered the evacuation of its headquarters in Dhahran on Thursday as fighting intensified between Saudi Arabia, the world’s largest crude oil exporter, and Yemen-based Houthi forces.
Meanwhile, the UAE Ministry of Climate Change and Environment reported an oil spill from a tanker off the coast of Umm Al Quwain. Authorities have not identified the vessel or disclosed the cause of the spill.
Shipping sources also reported that the Gem No. 2 supertanker was struck by an unidentified projectile on October 9, approximately 13 nautical miles west of Al Jazeera in the UAE.
Andrew Lipow, president of Lipow Oil Associates, said the market remained concerned about an increase in attacks on tankers. He warned that although more oil had recently been transported through the Strait of Hormuz, the situation could change rapidly.
Clashes involving the Houthis and a Saudi-led coalition supporting Yemen’s internationally recognised government have intensified amid wider regional tensions. The fighting has raised concerns over maritime security around key shipping routes, including the Strait of Hormuz and the Bab el-Mandeb Strait.
US President Donald Trump said on Friday that the war with Iran could end quickly, while suggesting that Washington might allow the conflict to gradually wind down.
Meanwhile, governments have taken steps to address supply disruptions by releasing oil from strategic reserves.
The US Department of Energy authorised an emergency exchange of up to 400,000 barrels of crude oil from the Strategic Petroleum Reserve to address a supply disruption affecting Phillips 66’s Lake Charles refinery in Louisiana. The reserve is already at its lowest level since 1982 following releases linked to disruptions caused by the war with Iran.
Germany’s national oil stockpiling agency, EBV, also issued a tender to sell diesel, heating oil and crude oil from strategic reserves. This marks Germany’s first such release since G7 countries agreed in early October to draw on reserves.
Elsewhere, Libya’s National Oil Corporation reported that a pipeline valve connecting the Hamada and Tahara oilfields to Zawiya port had been shut, reducing production at both fields.
Ship-tracking data also showed that the first Russian diesel shipment bound for the United States since an export agreement between Moscow and Washington was aboard a tanker heading to New York. Trump announced the agreement this month as part of efforts to reduce rising diesel prices ahead of the November 3 US midterm elections.
Meanwhile, US energy companies kept the total number of oil and gas rigs unchanged for a second consecutive week. According to energy services firm Baker Hughes, the total rig count remained at 603 for the week ended October 23, an indicator of potential future production.
Source: Reuters
